A New Pipeline for Europe’s Energy Future

The Nord Stream 2 Pipeline will transport natural gas into the European Union to enhance security of supply, support climate goals and strengthen the internal energy market.

The EU’s domestic gas production is in rapid decline. To meet demand, the EU needs reliable, affordable and sustainable new gas supplies. The Nord Stream 2 Pipeline will provide this by transporting gas from the world’s largest reserves in Russia to the EU internal market.

The Gas Market at a Glance

The Gas Market at a Glance

The EU’s domestic gas production is in rapid decline. Nord Stream 2 will meet Europe’s growing import needs by connecting the well-integrated European pipeline network to the world’s largest gas reserves in northern Russia, substantially enhancing the EU’s long-term energy security and helping maintain its competitiveness. This interactive map illustrates the context in which the project is being developed.

Source: Based on Prognos: Current Status and Perspectives of the European Gas Balance (2017), map adapted from ENTSOG

The EU Needs Additional Imports

Europe’s gas demand is expected to remain stable, but domestic gas production is declining.

The EU Needs Additional Imports

Europe’s gas demand is expected to remain mostly stable in the next 20 years, but domestic gas production is declining. Only the global LNG market and Russia have sufficient developed resources to fill that supply gap. Nord Stream 2 offers a safe and affordable way to deliver these resources.

Source: Based on Prognos: Current Status and Perspectives of the European Gas Balance (2017)

Meeting Future Gas Demand

Meeting Future Gas Demand

The EU’s domestic gas production is concentrated in northwest Europe and has decreased drastically in recent years. Even in more optimistic target scenarios, gas demand is projected to remain around current levels into the 2030s. Meanwhile, production levels are expected to halve again in the next two decades. This drop is especially drastic in the Netherlands, UK and Germany – which currently make up about 75 percent of the EU's domestic production. As a result, Europe needs to import more gas.

Source: Based on Prognos: Current Status and Perspectives of the European Gas Balance (2017)

A Key Fuel in the Energy Mix

A Key Fuel in the Energy Mix

As the fossil fuel with the lowest greenhouse gas and particulate emissions, natural gas currently has the second-largest share in the EU’s energy mix. The increase in renewable production in past years has mainly resulted in, and made up for, a reduction in the use of coal. Natural gas offers a cost-effective and sustainable way to achieve emissions reduction targets. Depending on the technology used, gas-fired power plants produce about 50 percent less CO₂ than coal-fired power plants.

Source: IEA World Energy Outlook 2016, BGR Annual Energy Report 2016

The Shortest Route from Gas Field to Consumer

The Shortest Route from Gas Field to Consumer

Based on proven, safe and sustainable technology, Nord Stream 2 needs less energy than other options. Taking a short route via the Baltic Sea, it’s the most competitive choice for the region compared to both LNG and onshore pipelines. The new pipeline will transport gas at 61 percent lower emissions than the Central Corridor, and its greenhouse gas footprint will be more than two times lower than that of LNG imports.

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Source: Illustration by Nord Stream 2

Securing Gas Supply in a Changing Global Market

Securing Gas Supply in a Changing Global Market

With global demand expected to rise by 25 percent over the next two decades, the EU must secure long-term gas resources. Gas trade flows will likely shift to the Asia-Pacific region, which will absorb currently developed LNG capacities. But Europe can benefit from its proximity to vast gas reserves readily available in northern Russia. These fields are not subject to resource competition from other regions.

Higher Efficiency, Lower Emissions

Higher Efficiency, Lower Emissions

The greenhouse gas footprint from Nord Stream 2 will be more than two times lower than that of liquefied natural gas (LNG) exporters. A major supply chain factor in this is the long-distance shipping required by LNG. By comparison, the Nord Stream 2 Pipeline will be fed by an efficient onshore system that needs just a single compressor station to propel the gas a relatively short distance across the Baltic Sea.

Consumers Benefit in a More Competitive Market

Consumers Benefit in a More Competitive Market

Natural gas transported by Nord Stream 2 will increase competition within Europe. By making more affordable Russian gas available, the pipeline will not only create an appealing alternative to LNG imports, but also reduce overall import prices. This equals big savings on Europe's gas import bill, especially in a tight global gas market when LNG demand is high in other regions.

Natural gas is a lower-carbon fuel that can replace other fossil fuels in the energy mix and deliver a reliable output to complement intermittent renewable energy. Nord Stream 2 will enhance the EU’s security of supply and complement, not replace, existing gas supply options.

Looking for more information? Find answers to the top 10 questions about the Nord Stream 2 project here.